Viz Media, one of the leading publishers of manga in the U.S., announced a sweeping round of layoffs Tuesday that will effect every part of the company. Sources tell PW that as many as 55 people were laid off at Viz’s San Francisco headquarters and it appears its small New York office, which had about 5 staffers, has been closed. The number of staff released represents about 40% of the employees at Viz Media.

After years of booming sales the U.S. , the manga industry seems to have hit the wall. While the category is still one of the largest in the graphic novel market, overall sales declined by 20% in 2009, the second year in a row in which manga sales declined.

In a formal statement, the company confirmed the layoffs although a company spokesperson declined to respond to specific questions about the numbers of emplyees released. In the statement, Viz acknowledged that it is “restructuring to adjust to changing industry and financial market realities,” and said it “had to refine its workforce by eliminating certain positions and making cuts in other areas.” The statement goes on to say that “we are of course saddened by these departures,” but that “we feel confident that with these changes, Viz Media will be more streamlined and able to withstand the climate of the economy at this time.”

There is more bad news for the manga industry, as Viz Media as announced a 40% reduction in staff, according to a story in Publisher’s Weekly. Forty percent! That is staggering, and considering that Viz is one of the stronger publishers in the industry, disheartening as well. Yen Press announced a few weeks ago that they are going to cease publication of Yen Plus magazine, and it appears as though Go! Comi, the pub that introduced me to some great artists, has closed shop as well. There is so much bad news that it’s hard to stay positive about the hobby right now.